Superintendent's Corner: State keeps changing the rules

February 04, 2002|By Carl Hilling

The results of this conference indicated that our state's economy will improve. Economists have been predicting economic improvement toward the end of this spring. However, no one can be certain which way the economy will go. Will it take a dip? Remain the same or make enough improvement so there will not be a negative impact on the state's school funding? It is always difficult to accomplish the task of setting a budget when it is based on speculation.

I believe everyone is aware that our state is facing a financial shortfall. This will have some impact on our state's 555 school districts. One problem that exists for all of these districts' budgets is the fact that a school's fiscal year differs from the state's fiscal year. Schools end their year by June 30 and begin their new budget year on July 1. The state confirms its budget by Oct. 1.

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The problem that exists with the current process is, schools have been in operation for a few months before the Legislature confirms the state's budget. This budget contains the state's school foundation allowance. Hopefully, it will match what the state has predicted it will be able to give to the schools. (Next year's projections are $6,500 per student.)

If you recall, two years ago the state gave the 555 school districts a three-year budget. This gave schools the opportunity to plan ahead for at least three years. It made good sense. Guess what? The third year of this plan will not materialize. This is because our state is facing a deficit. They will have to make reductions to have a balanced budget.

We hope to receive $6,500 per student. During the third year of the three-year budget, we were supposed to get $6,700 per student. The unfortunate aspect of this situation is that our expenses will increase. Our staff's salaries are on a salary schedule which increases with years of service as well as negotiated salary increases.

Our plan is to build our budget on the $6,500 per student. We may have to make adjustments to stay within our revenues. This will not be known or confirmed until the state completes its budget.

It has been mentioned that if our schools would only use better management techniques, they could operate in a more fiscally sound manner. I would challenge the people who make these kinds of statements regarding schools managing their finances. Let's have these people make their budget by June 30, begin their budget year and then experience someone else reducing their operating budget in October.

Most businesses can reorganize and in most cases downsize to adjust their finances. They can shape their own destiny. Recently, the Ford Motor Company had to make these kinds of adjustments to stay alive. This is different, you say. Yes, it is. No one outside their organization controls their finances. Schools are different from businesses. They cannot raise the price of their product. Schools deal with a variety of products. These products are our parents' most precious possessions - their children and their children's minds. Schools deal in knowledge. They help mold the future.

In closing, schools have to balance their budgets and have their annual budget approved by June 30, prior to beginning a new schooI year. Schools then have to wait upon the state Legislature's decision-making process, which isn't complete until October. The school budget-making process is challenging, but it's even more so when the rules of the game keep changing.

We are sure our local legislators will do their best and we will do our best in budgeting your tax dollars.